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V.Rishi Kumar

HYDERABAD, Feb.24

INDIA accounts for just about a single digit market share of the global IT and the growing IT-enabled services market and the Government needs to adopt a long-term perspective and not tax this growing sector if it were keen to ensure faster growth.

Expressing this view, the Chief Operating Officer of HCL Perot Systems, Mr C.P. Gurnani, felt that the Union Government should extend tax exemption for the sector beyond 2010. He said if the Government provided conducive environment to this sector, it would not only generate foreign exchange, but also help create millions of jobs.

According to Mr Gurnani, jobs for educated youngsters in turn can spur more business activity as the sector has witnessed relatively higher pay packages compared to other industrial segments.

Highlighting the importance of extending tax exemption, Mr Gurnani said that any other industry with investments of about Rs 400 crore- Rs 500 crore might generate a few hundred jobs. But in the case of IT sector, the number of jobs created could be a few times more. It was thud that the tax exemptions would pave the way for faster growth.

During the `India IT Forum' meet held at Hyderabad last month, the IBM India Head, Mr Thomas Abraham, speaking for the Confederation of Indian Industry, had expressed some of the concerns and urged the Finance Ministry to de-bottleneck some of these. They included reduction in excise duty on PCs from 16 per cent to 6 per cent to ensure faster penetration, annual depreciation for IT products to 100 per cent and changes in excise duty structure for software companies.

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